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tv   Power Lunch  CNBC  June 14, 2013 1:00pm-2:01pm EDT

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>> stephanie? >> cit. >> dr. j. >> tivo. record that one and buy that one. >> bakes? >> father's day sunday, light up the barbie. >> that does it for us. don't forget to catch "fast money" tonight followed by "options action." i'll see you at the nasdaq for that. follow me on 2008e 2008er @scottwapnercnbc. and a special "power lunch" begins right now. welcome to a special edition of "power lunch." sue and tyler are off today, and anything could happen in the next 60 minutes. i'm simon hobbs, and this is a special edition of "power lunch" with a special power panel. kayla tausche will join us covering all the big deals on wall street. a high network correspondent robert frank will also be here, kate kelly who covers high finance and the hedgies and covering politics and power direct and uncut from d.c. eamon javers, so from washington to wall street, from this country to around the globe, we've got you covered for the next hour exploring the events shaping our world through the "power lunch"
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special prism. we start with the big stories of the week, and, wow, what a week it's been. >> this week, a few months after recalling yoga pants revealing too much butt. what would you see? >> crack. >> the ceo of lululemon reveals hers is out the door. >> ceo christine day will step down. >> speaking of embarrassing reveals. the entire world knows the agency in charge of all things top secret can't actually keep a secret, or track down 29-year-old employee who spilled the beans on prism. >> the other question about him is where is edward snowden? >> in a clear sign of either outrage or just total indifference, americans go shopping, sending george orwell's "1984" sales soaring on amazon. you can't make this stuff up. in istanbul, angry protesters apparently like their turkey well done. mickey d's needs to beef up
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profits. the big new strategy, midnight mcmuffins. >> i don't know if that has anything to do with the legalization of marijuana in many states. seems to be a great marketing fit. >> genius. you and your 401(k) better look both ways because there are no speed limits on this street. >> more than 100,000 shares traded hands in the first ten milliseconds. >> in the blink of an eye, high-speed traders turn mille seconds into millions, and jamie dimon brings up his ole whale tale. >> there was no hiding or lying are, no bull [ bleep ]. >> sure, a senate investigation sees things differently but give the guy a break. doing math on a whale in london that bets on derivatives. sounds really f'ing complicated, and the silver fox is itching to be swinging single at the senior center. >> rupert murdoch filing for divorce. he's ending it with his much younger and hotter wife wendy. maybe someone should remind the
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old man his last divorce cost $1.7 billion. >> whatever payout there will be, will be in the form of cash as opposed to company control. >> and that, kids, is the wild and wacky week that was. >> and welcome to the power panel, and it has been a wild week. let's kick off with the fed. i don't think, guys, that i have ever seen so many markets on a knife edge as to exactly what the fed is going to say next week. would you say that's fair comment? >> i think that's a fair comment in the stock market has been a leading indicator. a lot of times we wake up in the morning, look at japan and say is the u.s. market going to follow japan's lead? no, we'll do our own thing based on whatever any traders are out there saying about what the fed is going to do. >> the big debate, kayla, and certainly been going on all this year and arguably for years prior is that is there this fed put or not? the stock market has rallied huge in the last couple of years and folks like david tepper saw somewhat that. >> come on, kate, we've gone
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beyond that. >> the question is when will it fall apart? >> when did he make a mistake, try town do the stock market when he basically let the genie out of the bottle? >> the whole debate whether this is a market fueled by a stronger economy or the fed. we were proven. the entire market was in convulsions over a blog post, not an article, a blog post, which he clarified today which was very important. we're in this mine the gap period. the fed has started to ease but the economy is not strong enough. >> how are they going to ease? >> to another point, there are these micro moves that central banks are making that are widely watched and do indicate reactions. so, for example, last night i talked to somebody who is long the nikkei who said i'm not taking my positions off despite the fact that we're in bear market territory. i'm waiting for 10/50 announcements. >> it's more about the yen. >> my question is when does this become kremlin watching? during the cold war they used to look at which generals were standing next to the premier of
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the soviet union to say who is up or who is down. when you're parsing something this fine, at what point do you kind of lose the ability to get it right, and at what point does the fed say we've got to communicate this a lot better and more carefully to the market? >> that's right. >> everyone is hanging on every single one of these words. >> that's why you see these long-short hedge funds who should be doing well if the s&p is rallying by double digits. not doing well if they don't do fundamental research and not picking their own stories because at some point the facts and the possibilities of growth have to bear out, not just the fed watching. >> what happened to what we saw exactly one week ago, 175,000 jobs added. everyone thought that was the perfect sweet spot. the fed would keep easing, at least through the summer, and people thought that they had an idea of when the fed would start to pull back as soon as seven days ago. where have we come since then? >> the conversation moved. markets are always ahead. conversation moved away from easing and tapering to rising interest rates, and i think making that leap has created a much wider gap, and a lot more fear because the interest rate increases, that's where you start to snuff out housing
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recovery, auto loans, everything else. >> we know that they publish what they expect interest rates to do. >> right. >> that's years away. >> absolutely. >> the end of tapering meant something that they are going to raise interest rates? >> you can't do the interest rates until the tapering at heat has begun. >> we know there's years between the two. >> they are still in negative. >> they have to go to plus. >> there's hysteria brewing, a young guy is looking to buy real estate. you're late and i have to go see an apartment and i'm worried i need to get in before the interest rates rise. i said i think you have a career or two but there is a sense of urgency. >> mortgage rates are up 4%, 4.15 on the 30-year fixed, that's been rising extremely quickly in the last month. >> the new york market is insane anyway. he's right to get in there first. >> i don't think he'll goes to wake up. >> not just new york. >> there's a mansion shortage.
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>> at the high end. >> i don't think you'll wake up tomorrow and see a huge hike. are we poised for upward movement and have we seen some? absolutely. people still have time to get into the market. new york is an exception and d.c. isn't sheep either. >> and traders are expecting 2014 as when the fed fund rate will actually start moving. >> right, right. >> let's change the subject and talk about billionaires. >> speaking of mansionses. >> speaking of one when billionaires divorce. two billionaires they are about to divorce. both of them are worth, robert frank, our wealth guy, about the same amount, $11 billion. >> 11 to 12 billion. >> two very different stories how that is likely to proceed based on the fact one was a pre-nup and the other one doesn't. >> today is d-day, divorce day. >> is that triple witching? >> rupert murdoch got married in
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1999, already very wealthy, wendy dang coming from guangzhou in china, her father a factory worker. had lots of good lawyers, iron-clad agreement. harold hamm married his wife in the late '80s and worth $16 million at the time that they married. think they would have had a pre-nup but his wife was very important in the building of that company. she actually helped run the company or had an executive role and did not have a pre-nup. that's why his payout could be $3 billion and murdoch's is likely to be tens of millions of dollars. the pre-nup is part of it, but it also had to do with the roles in how they created wealth. wendy was not important in creating news corp. harold hamm's wife very important to the company. >> what sort of precedent is there if any in hamm's situation where he could say there's a likelihood i'm going to be extremely successful and maybe my wife also, too. how can we safeguard against future wealth that we might have? >> shocked and lots of lawyers are shocked they did not have a pre-nup. it was kind of middle class when
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they got married. 16 million. obviously entrepreneurs and -- >> why are you shocked that they don't have a pre-nup? >> because people marry for love. isn't that actually the basis -- >> it has nothing to do with love. if you think -- >> it has everything to do with love. it's a marriage. it's not like a business agreement. >> do you have a pre-nup? >> absolutely not. >> that's my point, then. >> i was too stupid at the time. >> your wife is very successful. >> that's right. >> didn't this guire essentially -- >> do you have a will? >> people write wills. doesn't mean they want to die. just means that you have to have that protection. >> let me bring a business issue in this. didn't this guy stumble upon one of the best oil shale play in decades in terms of the bakken formation. who know that would become the well spring of american energy independence. stumbled on to this thing and had no idea what kind of wealth or what kind of intellectual properties? >> what is your view on pre-nups? >> i don't have one, if you're wealthy when you get married,
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fair enough. i happen not to have one. >> you raised the post-knupp. how does a post-knupp work? >> talk about romantic. >> that's what people end up having to do, and it's very, very painful. >> that's insanity. >> i'm making a lot of money here, dear. >> i have a friend who announced her engagement to her parents and they essentially said we're happy for you, want you guys to get a pre-nup and it almost turned the whole thing off, and years later they did end up getting divorced and it was complicated. >> the parents always know best. >> speaking of knowing best, let's talk about the president and the fact that he's going to go to sub sahara africa the end of the month. probably already know this in d.c. what's interesting is the revelation that in order to visit some of these subsaharan countries because they don't have great security forces, the united states is going to basically bring it for him to protect him at a cost of up to $100 million. >> it costs a clogsal amount of money. the "washington post" got their hands on a document, internal
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planning document showing what the costs were and exactly what they were doing. i would prefer that all washington leaks come to me, but this one went to the "washington post," and in this case it was leaked to them by somebody concerned about the enormous cost of this trip. i've flown on air force one only twice in my career, but when you're inside that bubble, it is incredible what it takes to move a president of the united states, any president at all. >> according to the article, 56 support vehicles, 14 limousines, three trucks loaded with sheets of bulletproof glass to cover the windows, fighter jets that can fly by, 24-hour coverage. >> isn't that like $180,000 per hour just to fly air force one? >> the president has to have all of his entourage and everybody traveling with him. >> it is the ultimate private jet. >> and also got to be able to command and control the united states military from inside that aircraft. >> let's be real. we're fighting wars on multiple fronts. just add syria to the list. technology is more and more pervasive and also expensive. >> you think that's reasonable. do you think it's reasonable to
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spend $100 million going to three sub saharan african states? >> the cost of technology and travel and security. >> i'm asking you your opinion. is it reasonable? >> in line with presidential travel including prior terms. >> a very expensive trip were leaked, south carolina governor nikki haley. the trip was $127,000. it was too europe, and the trip was to create jobs for the state of south carolina. the big criticism there was that the money was spent but no jobs were created. i'm interested in what's going to get done on this trip and what's the benchmarks? >> just bad timing. >> it's timing, but what we've seen is the white house will cancel the safari where they had to bring in extra snipers in order to shoot any cheetahs that might make a move towards president. they will cancel that one thing, and the state to kayla's point will pre-negotiate the deliverables. at the end of one of the foreign trips -- including the cheetahs, have them pre-stuffed and deliverables.
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they announce those right at end. >> but this is actually potentially new territory for the united states. if they were spending $100 million on say a military exercise, you would go, well, that's what it costs. this is soft power. >> right. >> this is what europe has done for years. what the great relations between the united states and africa mean for the future and that's quite difficult to quantify, simon >> the white house will tell you it's hugely important especially at a time when the chinese are making inroads into africa developing a lot of relationships, business, political and military. the united states needs to be there and visible there as well. coming up on our special edition of "power lunch," look who is talking. >> things aren't bad. i mean, things are not bad. i mean, this is a 2% economy. this is not a disaster by any means. >> this bill isn't perfect. it's a compromise and going forward no one will get what. >> there was no hiding, no lying, no bull [ bleep ], period.
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>> what a week. straight talk on the stories making headlines when this special edition of "power lunch" returns as we head into the weekend. forward no one will get what. [ female announcer ] there's one thing dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school.
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. we're at war, and we need to find out what these guys are up do, because if you don't preempt them, we're going to pay a heavy price. >> senator lindy graham of south carolina weighing in on the nsa leak that grabbed headlines all this week. eamon, this was your story.
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>> yeah. so fascinating. i don't even know where to begin, because first of all, our minds were kind of blown last week in the london "guardian" and "washington post" revealed some of the details about secret nsa programs including code names and how they worked, a lot of controversial details and then over the weekend we learned the name of the person inside the nsa contracting area who had actually leaked this, edward snowden, and we learned that he had fled to hong kong if i remind you china which was the big beneficiary of the leaks because it happened in the 48 hours before president obama made with the chinese president last week. president obama was going there to tell the chinese president that the chinese need to knock off their cyber espionage. that made it very awkward for the united states. >> some sympathy with the guy, once you found out he fled to hong kong. >> imagine if deep throat showed up in moscow 24 hours after bob woodward broke watergate. >> can i take the other side. there's something inherently human about the guy, sort of an underdog appeal. i think you're kind of tempted
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to root for him, and when you hear him talk about a subject we've known literally nothing about up until a week ago. it's terrifying. talking about turn key tyranny. he's well spoken and timed this thing perfectly. he should get into a career of media strategy if he has his freedom after this. >> the fbi says they are going after him and will try to prosecute him. >> of course they are. >> given the fact that he boosted these documents on an elementary thumb drive of all things, plugged it into his computer. >> more opportunity than manning because they planned this thing so carefully and he's seeking political refuge. >> why do you have sympathy for him? >> look, i think it's -- it's the ultimate david versus goliath. i mean, he's revealing this kind of stunning set of information. if you listen to him or len greenwald who broke the story for "the guardian" talked extensively how they redacted the vast majority. >> americans just don't seem to care much about their privacy.
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it's not just all that's happened in technology, but i think they understand that this was meta data, not particular phone calls they could listen into, and i don't think americans are panicked. the more important issue is that this program has stopped terrorists from coming to america. i think that's -- >> more revelations to come. >> "the guardian" said there's more to come. snowden clearly left with more than what he's leaked and the question is what else is he putting out there and is he cooperating with the chinese? he gave an interview to "the south china morning post" -- >> but that's not a state-run newspaper. >> who is paying for his poe tell bill? so many questions about this guy. >> edward snowden isn't the only one in the crosshairs. the sac hedge fund capital, one of the biggest players on wall street. thousands of jobs are connected to it, is also under now increasing investigation. kate, you've been reporting on this all week. >> what's the value at this stage? >> what's interesting in the past week is that investors
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pulled between $2 billion and $3 billion out of this hedge fund which manages a total of 15 and that tells you if you add up the math, the vast majority of external capital is now gone. a vote on the wallet of what's likely to occur and an indictment of its founder on insider trading charges. they have cohen in their crosshairs and it's going to be an interesting summer. >> they have boards, these investors have boards that say, look, if there's any chance of problems we have to get out, just from the government's point of view. not like investors really know something that the rest of us don't, and so it's 9 billion that's inside capital, and what, 3 billion outside. >> 9 billion, 6 billion outside at the beginning of the year and back of the envelope it's between 1 and 2. >> it's basically a will they or won't they become a family office? that's essentially the worst case scenario. >> turned up okay for george
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soros, carl ihawn. >> he can continue to run this, as you mentioned, 1 thundershower-person firm, bigger payer of fees to wall street. >> if he's barred from the industry can, he manage his own money though? >> i don't know the rules aren't that, do you? >> so michael milken has done just fine, having been banned from the industry. it's unclear exactly how he manages his money and how involved he is, but he -- >> difference between a corner office and personal affairs. >> if all these redemptions have already happened, has the impact already happened on s.a.c. or is it permanently fundamentally diminished? >> they have hot on the travel people they suspect of insider trading. to what degree was moral outrage, class division motivating the sort of zealous -- >> eamon is making the point the
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mere fact they go after them with such discretion, whether they are guilty or not, they destroy the business. >> the business impact happens now. the verdict will happen much, much later. >> i don't necessarily agree with that because he's still got $9 billion in capital. family office rules are very generous as to who can be part of your family. >> had a much bigger business that has been destroyed. >> your net worth goes, from you know, 8 billion to 5 billion. again, jail and being barred from the industry, that is the real consequence. >> okay. before we take a break, let's chalk one up for the interns. kayla. >> chalk at least one up. a big week for the unpaid intern and the class action lawsuits. yesterday a new lawsuit from two former lawsuits at conde nast, one for the "new yorker." the first one said he made up to $500 for anner tie summer and was actually doing -- and these were also jobs in 2009.
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he said he was editing humor essays and working 12-hour days at some point and another intern from "w" magazine said she was paid $12 a day for 12-hour-plus days, didn't get the class credit she was supposed to get and still doing the job the regular employees would do, but the reason why it's important is because earlier this week a federal district judge in manhattan ruled that 20th century fox had production interns on the movie "black swan," the ballet movie with natalie portman a couple years ago that essentially did what regular employees would do but they were unpaid but that they were integral to the actual production. >> an unpaid internship has to be educational and could even be demanding of the company's time and take away from their production. >> the company is going to say, look, you have a choice. we can scrap our internship program and deny the kids on the job if you make us pay money. >> kayla, do you pay all your interns? you have like, what -- >> i will decide once i have interns.
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not there yet. >> i don't need an entourage. >> i think these interns are on to something. i think the whole racket is totally unfair. when i was a college student, hi an unpaid internship at the magazine, worked for the government and at the peace corps, unpaid and i learned important skills. if my parents couldn't affair'd ford to put me up or give me lunch money i wouldn't have access to this. what about everybody else? >> it's for only those people whose families can help them. >> the world far exceeds the supply of jobs. >> if you get an internship at goldman whether they pay you or not, it will open doors. >> goldman sachs pays its interns multiple thousand dollars as well? they get paid? >> supply and demand. >> when the supply is enormous and the demand is infinite, the price goes to zero? >> sure. >> check the economics. it goes to zero very fast. >> it isn't right because it's
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so hard with young people to get started. >> you are on fire today, kate kelly. >> never told us what happened with the doctor. i assume it was sorted. >> i think he went to look at the apartment later. he told me he was considering an a.r.m. >> meantime, what you get is what you see. new york city's two workers rescued after dangling from scaffolding near the top of a skyscraper. that's for story we're wrapping up this week. turkey, violent protests erupt after police turned the on activists trying to protect trees. is that how we're telling the story. and colorado wildfires clear a path of devastation, consuming everything in their path. when we come back, we'll let the pictures tell the story, but, first, let's have a look at where we are on the markets as we head into the weekend. an important time for positioning for many in advance of what the fed will say next week. there you go. the dow is down 123.
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>> so, you know, we all talk about inventory falling around the country, but it's falling especially hard in some of the wealthiest zip codes in america. >> lack of supply. >> lack of supply. if you're wealthy you don't have to sell until you get the price. there's some numbers. carmel, california, down 76%, palm beach, down. there's a nice home in carmel, california. $8 million. that's one that i think actually is still for sale, so act now because they are running out of mansions there. only four mansions left priced over $1 million. >> the intern will buy this now that they get paid. >> let's go to -- this house in palm beach which is -- which was on the market for a while, got snapped up for $11.3 million. prices in palm beach up 26% year over year and then greenwich, connecticut, $1 million doesn't buy what it used to. >> that's a beautiful home. >> that house is $2.8 million. again, a lot of these markets,
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very little supply, and the wealthy right now are doing well in terms of money. they can borrow at these low rates so they are running out of supply. >> in all seriousness, this is a problem for the ultra wealthy. i remember a couple years ago hedge funds were moving to switzerland because of regulatory issues in london and, of course, in the u.s. >> right. >> and a lot of folks didn't want to move because there were only so many nice homes on the lake in geneva. >> right. >> this is a quote from a hedge fund guy i knew and it became an issue for the companies. >> that's very boring. >> may be boring. >> if you're a company -- >> kayla? >> you wouldn't believe what goes on in brussels. >> you wouldn't believe what goes on in old greenwich, connecticut either. >> after 6:00 p.m. >> sometimes it's not what's in the picture but what is actually missing from it, right, eamon? >> absolutely. following this story. the sequester and the furloughs have been going on in washington. we've got a live picture. this is an actual live picture of the irs right now, and just
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crickets there. it's furlough day at the irs. a couple of tourists in the shot there. >> nice sun hat. >> it's very hot in d.c. i'm glad i'm here. >> no 40-minute security lines because of sequestration. >> what's great about being in d.c. during the furloughs and sequester, the traffic has been terrific, able to make it to the office. >> if people are not getting paid -- >> they are not getting paid. that's the point of the exercise to cut back on the federal government spending on this. instead of layoffs, they will cut people a number of days a year and we're talking to tax professionals who say i can't get a resolution to my tax questions because my irs contact isn't in the office on friday, so it becomes very difficult for some people to get some of this stuff worked out. >> and the president is traveling to subsahara africa. >> sequestration is a tale of two stories n.new york, i'm not hearing a lot about it but in d.c. people really see it. my dad -- >> that's where all the federal employees are. >> do they just walk up to somebody and say you're sequestered? >> a magic wand that happens you
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on the shoulder? >> julie louis-dreyfuss goes -- >> the tsa security lines are so much longer than they were before. >> they actually went back and fixed that problem which is interesting. >> the immigration bill, more money in the immigration bill i think is precisely for that. a recent advisurvey, 40% said t wouldn't recommend america as a tourist destination because of the cues. >> what would you pay for an x 12 foot slab? one person -- i'm hoping we can see it. one person in san francisco. >> location, location. >> one person in san francisco paid $82,000 for this parking spot. >> parking porn. >> it's in the trendy -- this is the best we can do. >> that's a little more evocative than you think it is. >> this is in the trendy south beach section of the city, and, yes, the owner does have to pay property taxes. >> who are your neighbors here? what are you in between? i want to know what i'm actually
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getting for that are 82,000. >> a porsche, a toyota. >> i just want to know. >> you might be getting between a wall and a column. >> our might not drink and drive in the first place. >> this is a bargain, because in new york there was a parking space sold for $1 million. why is there such a big discrepancy? >> location, location. >> they rent in san francisco $200. look at future earnings versus the present value of that, that's a good deal. >> you won't lose money on the space. >> but a $1 million parking space in new york, would you. >> i would park my minivan there. >> the price in cash right now is lower than the future price. >> at least in san francisco it looks like that. >> if i take the crumbs from the cheerios the kids have eaten and scooped them on the parking place, is there a guy that cleans it up for you? >> there should be. >> when we come back, we'll do a little socializing. what's trending on social media right now and what's lighting up their twitter feed as well. stay tuned for that. tdd# 1-800-345-2550 [ trader ] when i'm trading, i'm so into it,
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we have some news on the carl icahn and the dell deal. let's go to david faber for the latest at the stock exchange. david? >> reporter: thanks very much, simon. a deal we've been following very closely as time gets tight for carl icahn and southeastern as ed management to shore up the structure and financing of their recapitalization plan for dell. sources close to the situation tell me the chances that icahn will bow out of his pursuit of the recap have grown considerably. while icahn is not talking, bankers and bond investors who have negotiated with him to line up what's now about $5.2 billion in financing tell me the prospect of a need for another $2 billion worth of equity for a recap is giving icahn pause as he reviews the horrendous operating numbers that dell has recently reported. it is those numbers when coupled with the need for more debt and equity to address a so-called liquidity gap in funding a $12 special dividend that may tip icahn to bow out.
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he's teaming with southeastern asset management may add a layer of complexity to that decision. a spokesperson for southeastern had no comment. whatever path this group goes down, it is running out of time to do so much. the meetings with the proxy advisory firm iss in which both dell and icahn will present their plans are fast approaching, and without a shored up financing plan for his recap, well, icob has little chance of winning iss' backing, and that's likely to prove crucial, that backing, in the july 18 shareholder vote on the deal. we'll be watching, simon, but perhaps we will hear something in the not too distant future. back to you. >> david, it's kate. just a quick question about the icahn bid. hasn't he faced a little bit of a credibility gap all along. he raised some reasonable issues about the problems with the michael dell plan, but at the same time, as you point out, he's not been able to lock up all the financing that he needs. technically what he's presented is even a bit. i use that word wrongly, right? it's a plan but it's not firm yet. >> well, it's a recapitalization
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plan that by the way though is somewhat embraced by investors and the idea being if you're going to lever the company up to go private, mr. dell, why not lever it up and give it a huge dividend and then we'll take the so-called stub and we'll see how things go. in icahn's plan, if he were able to fund it, it would be as much as a $12 dividend and you'd have 165 essentially option if you will, kate, but the question is can he get there? and most recently last week when we heard from the special committee, we saw the so-called liquidity gap meaning the numbers don't add up right now to be able to take on the debt that he's proposed and the equity that he's proposed and be able to deliver that $12 a share, so it becomes 10 or 9 or 8.50 a share, a very different construct for investors to choose from. time is getting very tight for them to really shore it up. >> david, this is kayla. there was also a powerpoint presentation in the last couple of weeks showing the direction of the business. almost every single arrow was red and pointing down.
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is there any pause on icahn's side as far as the direction of the business and how the pc business is actually likely to perform based on what the boards outlined? >> i think the main concern on the part of icahn, and other i'm paraphrasing and speculating a bit is really about the overall decline in the business, the horrendous nature of the numbers, whether or not it is a falling knife. you know, it's one thing to say, okay, we might have to put in more equity and raise more debt, but if you feel confident about the direction of the business, you may be willing to do tharks so i think a lot of this comes back to his view of where that's going and whether it can be believed if things are as bad as they appear, to judging from the most recent correspondence we've got. >> he sees sales in a historic low or at least in the first quarter. one thing that caught my eye was the ron perlman setman with the s.e.c. relating to a privatization attempt that resulted in a bunch of
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litigation, and now according to the s.e.c. the misleading of directors and so on. there were tough comments by an s.e.c. official in there saying that privatization efforts really open the door in shenanigans by company management. i just wondered if that would bear at all on the thinking, even of those supporting a michael dell effort. >> this goes back to the inherent conflict and the buyout and the endless questions of whether you can really trust the numbers, because it seems if you bring the numbers down, you enhance your own chances for buying it, but i will say in this case, in dell's case, the special committee has done a lot of things, including this july 18 vote when michael dell can vote to say, hey, shareholders will give you to give you the best deal we possibly can. >> david, look, thank you for coming forward with that, the very latest that you have on dell there, and nice to see you working on a friday afternoon. >> yes, i like to build up to fridays during my workweek. >> thank you, david, have a great weekend. david faber with the latest on dell. we're heading into a break after that. what we have from the twitter
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just beginning to cut our losses very slightly as we head into the weekend. we were down 125 on the dow. obviously there will be full market coverage in 15 minutes when "street signs" takes to the air. meantime, still in the middle of our special edition of "power lunch." let's see a show of hands. who actually tweets at the moment? you must all do. >> at the molt, you meaning right now tweeting? >> you're the man out, simon. >> i am. >> you are the ludite. >> i don't have anything to say. a new study finds more journalists are tweeting, 60%, up 40% from last year. what's lighting up our panel's twitter feeds in. >> eamon, i did a story on what was happening in terms of market-moving information getting out to the public early. >> you broke information that a
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lot of these private surveys are -- >> yeah. we obtained the contract which showed that thompson reuters was selling the data two seconds early in terms of the consumer confidence number and saw that happen again this morning. a lot of folks on my twitter feed reacting very negatively to that saying it's not fair. they don't like it and a couple of tweets prepared if we bring them up on the screen, but a lot of folks saying they just didn't think it was a good idea at all. some minorities saying that in fact they thought, you know what, free markets, if these guys paid for it, it's their business. one from brian, boy oh, boy, i wish i could wager on something like that that already happened. like betting on the blackhawks to win after the overtime goal and another sports analogy here in the next tweet. he said if you're familiar with college football at all you know why the university of michigan study might be affected here. this would be a great day for ohio state to come out with a competing consumer sentiment survey, maybe the big game in terms of consumer sentiment. >> many of us knew it came out five minutes before for those of
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us that are subscribers n.fairness, a lot of people have market-moving news but they create themselves. if i'm upgrading a stock and i'm a really respected analyst, of course, i release that to my clients first of all before i put out a press release to the market. this happens all the time. this is not -- >> the question here is what is it that wall street is buying with this number, information about consumer sentiment? if that's what they are interested in, go and conduct a poll and hire a polling firm and find out what consumers are thinking. what they are buying is advanced information on a known point in time when there's traditional a pop or drop in the market and if they can get in they can jump in and make some money. university of michigan created it. >> just because something is market moving couldn't mean it has to be regulated surely. >> that's one of the big questions, what the defenders are saying. hey, look. if thompson righters is paying $1 million a career to the university of michigan as they are and the university of michigan puts this data out, who is the government to tell them who they can put it out to and
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n. >> that's the debate. must move on. what do you have for news. >> super men. i'm a big superman fan and "man of steel" debuts. tens of millions of dollars already. many have already seen this movie. they have $160 million worth of ad tie-ins, including twizzler. does superman eat twizzlers? >> i don't know. >> made of kryptonite. >> and clark kent no longer wears glasses in the new "man of steel." >> because they -- they decided not to have him wear glasses anymore. >> because he has no faults. why would he need glass nez? >> because robert frank is wearing them. >> i've never seen robert frank and superman in the same room at the same time. >> mean neither. >> the other interesting point about superman is -- lots of tweets about how superman shaves because i guess his beard is made of steel as well so there's all these videos from gillette
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and other people on how superman shaves. never really thought about it but it's a quantum physics problem. >> i sense promotional opportunity there. gillette. >> they are already there. >> somebody thought of it. >> somebody at warner brothers? >> what's on your twitter sphere? >> a lot of interesting talk about snowden this week as we discussed earlier. one thing that caught my eye is a "new yorker" blog item about his girlfriend, an internet exhibitionist. a pole dancer. >> not shy. >> an outdoor enthusiast, someone who was not shy about tweeting pictures of herself, some scantily clad and talking about what she was doing in hawaii. she did take down on tuesday, interestingly. a contrast really to where snowden is. >> there's not always a time for a proper good-bye. >> you have sympathy for for her? >> for both of them. >> pole dancing is a hard job.
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>> it's interesting and ironic. >> it looks tough. >> as the "new yorker" pointed out -- >> kayla, what's lighting up your twitter sphere? >> well, a very funny thing happened this week. i try to embrace all social media, be it twitter, facebook and linkedin and pinterest which i'm a newcomer. haven't done much on pinterest but i have a very unique follower was neal kashkari, he had a website saying he wants to devote the rest of his life to public service after going to pimco and i said he must have free time on his hands and i tweeted him and said this is hilarious. potentially he's interested in my interior decorating and wedding boards i'm putting up there and he tweeted me back and said that sounds fascinating. >> did he send you a gift yet?
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>> talking about a 2015 event. >> interested on pinterest. he has pictures of him and his dogs, inspirational quotes from steve jobs and probably because he's making this public profile. >> a very public profile. >> are you saying he's stalking you? >> interested in interior design. >> find up standing man. >> are you getting a pre-nup, by the way? >> no. >> because of love. >> really? >> no. >> up next, we're breaking down the week with numbers. stay with us. ♪ 8, 6, 7, 5, 3, 0, 9 [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪
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here we go. this week by the numbers, got a bit of a game show here. the idea is that i give you a number from this week, and you guys guess what it's from. ready. >> ready. >> number 3. >> number of wives rupert murdoch has divorced. >> it could have been murdoch. >> no more, no less the magic number. >> no. it is the dow had its first three-day losing streak of the year. >> three-day. >> now a four-day losing streak. >> here's a number, 139 billion.
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>> i'm dying on this. i have no idea. >> you should know this. it's from washington. >> the cost of the next presidential trip. >> the u.s. government posted a budget deficit of 139 billion, 11% higher than last year. >> i'm a failure. >> next welcome, number 4. >> the number of down days the dow could have it. >> is 4 the loneliest numbers. >> mortgage rates rise just shy of 4%. >> how was i going to know that? >> a look ahead to next week. >> that's not exact then. >> that's not fair. >> that's way too hard. ♪ bonjour ♪ je t'adore ♪ ♪ c'est aujourd'hui ♪ ♪ et toujours ♪ me amour ♪ how about me? [ male announcer ] here's to a life less routine. ♪ and it's un, deux, trois, quatre ♪ ♪ give me some more of that [ male announcer ] the more connected, athletic, seductive lexus rx.
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to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors. let's look at what's coming up next week on our panel's radar. eamon, you're first. >> i was going to talk a little bit about the president going to ireland next week. >> the g-8. >> the president is going over to ireland, but now you'll going to tell you about this e-mail which might be on my mind. my lovely wife maureen says i was looking in our files and i
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found our pre-nup. you owe me everything, so we might -- that might take up my week next week. >> eamon might be working longer hours. >> there's always the post-nup. >> one is we don't have a pre-knupp and tpre pre-nup and we don't have anything to split. >> that's the cnbc way. >> kayla? >> i'm watching the mortgage applications number to see how slippery this slope s.refinancing has dried up. mortgage rates spiked above 4%. how are consumers feeling in this environment, and what does it mean for the business? >> what's your reading on where we are with that? >> in terms of the refinancing environment? >> yeah. >> i do think we'll see a lot of that activity go away. it's been a key cash cow for banks. >> a gradual kind of. >> no, i think will be gradual. >> would you reach a point where everybody has refinanced and there's no more to come. >> i think people will always be cycling into periods where they want to refinance, but the question is are the economics attractive. >> now that rates are going up. >> was this a two-week blip, or is this a slide that's going to
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continue? i know a lot of people are watching. >> what are you watching next week in. >> i'm looking at london because next week and the week after is the big auction season we had. in new york we had had it a few months ago. the summer auction season. a monet will sell for around $40 million. we'll see whether the wealthy, given all this market volatility, still have a taste for collectibles and whether the asset prices, not just stocks but lots of assets have gone up, whether arts and collectibles are still up. >> it has to be yes, right, it's a no-brainer? >> crazy prices and where do they come in relative to very high expectations right now. >> of further inflation. >> what sort of inflation do you think we might get? >> look, i think we'll see prices up even more from new york. >> all right. >> some of these pieces are doubled and tripled from 30 seconds ago. >> let me squeeze you in? >> i'm going back to s.a.c. capital, a hot story this summer. a couple of legal deadlines coming up to watch. next week end of the week, steve cohen's first wife, speaking of first wives, has a status conference on friday to talk
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about a suit she filed against him seeking additional money saying, among other things, he engaged in racketeering and hid funds from her. >> another reason to stay with your first wife. >> absolutely. >> indeed. >> my only wife. >> i really enjoyed that. thank you very much. kate, kayla, eamon and robert, thanks very much. i'm simon hobbs. that was our special edition of "power lunch." "street signs" starts right now. is the treasury's market like a ponzi scheme? noted investor scott minot says it is. he's here with why and why he's putting the billions he's got to invest. detroit edging closer to bankruptcy. it is suspending some debt payments. this could set up the biggest battle over an american city's finances ever. plus, yesterday we talked herbalife with analyst tim ramey. today he's here to respond, and on this flag day we'll bring

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